What do economists mean when they state that investment is spending on “goods for the future”?
Please provide the best answer for the statement.
It is easiest to explain this statement by realizing that consumption is spending on goods and services for the present. The resources that are not used for consumption can be devoted to goods or services that can be used in future production. For example, investment in education, machinery, factories, equipment, and tools are types of spending that will be used in expanding production of consumer goods and services in the future.
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During the 1870s, ___ surpassed ___ as the leading source of power
a. animals; humans b. water; animals c. steam; water d. electricity; steam
Some people have argued that government should provide only those goods that we would truly define as public goods. If so, which of the following should government produce?
a. National Defense b. day-care centers for children of working mothers c. mail delivery d. unemployment benefits e. subsidies for agricultural products
Payments to stockholders are called ______, and payments to bondholders are called _______
a. interest, dividends b. profits, dividends c. dividends, profits d. dividends, interest e. dividends, mortgages
Comparative advantage refers to the ability to produce output with fewer resources than any other country.
Answer the following statement true (T) or false (F)